American spirit exports to Canada experienced an 85% decline in the second quarter of 2025, a significant drop according to the Distilled Spirits Council of the United States. The council expressed concerns over this trend, attributing it to international consumers turning away from U.S.-made products amid trade tensions.
The impact of President Donald Trump’s decision to impose tariffs on Canadian goods in early March is evident in the limited availability of American alcohol on Canadian shelves and in establishments. The council’s report highlighted a 29% decrease in exports to the U.K., a 23% drop to Japan, and a substantial decline in exports to Canada, which was the most affected among key markets. These countries, along with the European Union, represented 70% of U.S. spirit exports in 2024.
The council, representing producers of spirits like whisky, vodka, rum, and brandy, noted the shift in consumer behavior towards supporting domestic industries or seeking non-U.S. alternatives due to perceived unfair U.S. tariffs. Sales to Canada plummeted below $10 million US in the second quarter.
Council CEO Chris Swonger emphasized the immediate negative impact of trade tensions on U.S. spirit exports and called on the President to facilitate a return to tariff-free trade with longstanding partners for the industry’s sustained growth.
Brown-Forman, the parent company of popular alcohol brands like Jack Daniel’s and Woodford Reserve, reported a 62% decrease in sales to Canada in the first fiscal quarter of 2026. The company’s CEO, Lawson Whiting, highlighted the challenges posed by the trade dispute, affecting U.S.-produced brands disproportionately compared to non-U.S. brands.
Experts, such as Robert Huish from Dalhousie University, expect Canadian consumers to continue supporting local products even if the trade dispute is resolved and American alcohol becomes more accessible. The Nova Scotia Liquor Corporation revealed that the removal of American alcohol from shelves led to increased sales of local spirit products and wine, with a notable surge in demand for Nova Scotia spirits.
The NSLC also reported a rise in Canadian wine and whisky sales compared to the previous year. The potential long-term impact on consumer behavior and loyalty towards national products remains a subject of interest as negotiations between Canadian and American officials continue to address tariff issues.
